JSCM Video: Order from Chaos

You know that supply chains are complex.You may not know that complexity can have a positive effect on innovation and your supply chain performance.

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Editor’s note: This video is collaboration between the Journal of Supply Chain Managementand Supply Chain Management Review. Each month, we bring SCMR readers a video interview from the pages of JSCM.

In this month’s video, we hear from Melek Akin and Robert Suurmond about their recent work with Davide Luzzini and Daniel Krause titled Order from Chaos: A Meta‐analysis of Supply Chain Complexity and Firm Performance.

If we’ve learned anything over the past 18 months, it’s that supply chains are complex. Or, as this months researched note: ”Increased globalization, varying customer requirements, extended product lines, uncertainty regarding supplier performance, and myriad related factors make supply chains utterly complex.

While previous research indicates that supply chain complexity plays an important role in explaining performance outcomes, the accumulating evidence is ambiguous.”

To put this to the test, Akin, Suurmond, Luzzni and Krause, analyzed 123 empirical studies. Among their conclusions is that complexity can improve performance, writing that “although supply chain complexity has a negative effect on operational performance, it has a positive effect on innovation performance and financial performance.”

Be sure to click on the video. You can access the full article here.

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About the Author

Bob Trebilcock, MMH Executive Editor and SCMR contributor
Bob Trebilcock's Bio Photo

Bob Trebilcock is the editorial director for Modern Materials Handling and an editorial advisor to Supply Chain Management Review. He has covered materials handling, technology, logistics, and supply chain topics for nearly 40 years. He is a graduate of Bowling Green State University. He lives in Chicago and can be reached at 603-852-8976.

View Bob's author profile.

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